Government regulation of multi-homeowners’reflection effect’
Reflecting the expectation of’revitalizing reconstruction’ in the election of the mayor of Seoul
Although the government is implementing a high-strength regulatory policy targeting high-priced housing, the preference for medium and large apartments in Seoul is more prominent. Rather, the demand for a’smart single house’ to avoid regulations targeting multi-homed people increased.
According to the industry, the rise in apartment prices in Seoul has been slowing recently, but some of the apartments in Gangnam have’reported price’ transactions one after another. In particular, the major Seoul Mayor candidates running for the April 7 rehabilitation election professed to ease the reconstruction regulations, and the reconstruction market centered on the Gangnam area is in a tumultuous appearance.
KB Kookmin Bank’s monthly housing price trend data shows that in March, the average sale price of large-sized apartments in Seoul (exclusive area exceeding 135㎡) was 2.2.1786 million won, exceeding 2.2 billion won for the first time. It is the highest price since January 2016 when related statistics were written.
The average sale price of large apartments in Seoul is on the rise this year. After surpassing 2.1 billion won in November of last year, it surpassed 2.1 billion won in January of this year, followed by 21.9388 million won in February this year and 2.2 billion won in March. Experts analyze that large apartments in Gangnam 3-gu (Gangnam, Seocho, and Songpa-gu) led the price increase.
In fact, the 245㎡ type for Hyundai Apartment 7th in Apgujeong-dong, Gangnam-gu, was sold for 8 billion won on the 5th. It’s the best of all time. The reported price for this apartment was 6.7 billion won in October last year. It is 1.3 billion won in six months. This is the same sale price as the highest price among apartments traded this year in the country. Earlier, a 243㎡ type exclusively for’Hannam The Hill’ in Hannam-dong, Yongsan-gu, Seoul, was traded for 8 billion won in February this year.
A nearby realtor said, “The price of large apartments in the Apgujeong-dong area is so expensive that there is not a lot of demand to catch a sale even though there are no loans.
The 160m2 type for Apgujeong Hyundai 2nd Apartment was also sold for 5.43 billion won on the same day, but the report is also a transaction. In the case of this apartment, the previous reported price was 4.25 billion won, which was recorded in December last year, up 1.18 billion won in four months.
In Seocho-gu, a 198㎡ type for Raemian Firstage in Banpo-dong was sold for 4.85 billion won on the 4th of last month, and Shingo made a new record.
A 178㎡ type dedicated to Asian Athlete’s Village Apartments in Jamsil-dong, Songpa-gu, which started the first precise safety checkup, the first gateway for reconstruction last month, also recently traded at 4.25 billion won. Compared to the reported price of 4.1 billion won in November of last year, it rose 150 million won in four months.
There is an analysis that the anticipation for the Seoul Mayor’s by-election was reflected. In addition, Democratic Party candidate Park Young-sun and People’s Power Candidate Se-hoon Oh both pledged to ease reconstruction regulations. In particular, as Candidate Oh, who has a high approval rating in various public opinion polls, announced that he would abolish the regulation on the number of floors on the 35th floor along the Han River through a media interview, expectations for reconstruction around the Han Riverside complex increased.
The increasing demand to secure tenants for reconstruction is also the reason for raising the price of apartments in this area. Local real estate brokerages explain that there is a growing demand to buy reconstruction apartments in the overheated district immediately before the establishment of the association, because the right to occupy does not come out if the reconstruction apartment is purchased after the association is approved for establishment. Apartments in the Apgujeong-dong area, which recorded the reported price this time, are also about to be approved for the establishment of the association.
▲ A 245㎡ type exclusively for’Hyundai 7th’ in Apgujeong-dong, Gangnam-gu, Seoul, was sold for 8 billion won on the 5th, recording the highest selling price of apartments in the country this year. The appearance of Hyundai Apartment in Apgujeong, Gangnam-gu, Seoul. (Newsis)
Experts’ opinions differ over the prospect of housing prices for large-sized apartments in the future
In the Gangbuk area of Seoul, the so-called’Mayongseong’ (Mapo, Yongsan, Seongdong-gu) area has a steep rise in the price of large apartments.
The 240㎡ type exclusively for Hannam The Hill, Hannam-dong, Yongsan-gu, was sold for 7.5 billion won last month. The report price that was established a month ago (6.9 billion won) has been renewed. The 241m2 type exclusively for Galleria Foret, Seongsu-dong 1-ga, Seongdong-gu, was also traded at a reported price of 5.95 billion won last month. The previous report price was 5.37 billion won in October last year.
It is unclear whether the price of large apartments in Seoul will rise further in the future. Due to the reflection effect of the government’s regulation of multi-homeowners, there is still a demand to focus on’one smart house’, and there are many views that the ransom price of large-sized apartments will rise further if the pace of reconstruction is accelerated after the Seoul Mayor’s election. Kwon Il, head of the Real Estate Info Research Team, said, “It is likely that the phenomenon of multi-homeowners who are feeling the burden of reinforcing the ownership tax (property tax + tax) will continue to change to’smart one’.”
However, the objection is also difficult. KB Kookmin Bank’s senior real estate expert expert Park Won-gap said, “With the public price rising significantly and the increase in the holding tax burden, there is a possibility that the price will be adjusted as the property comes out one by one as the tax base date of June approaches,” he said.